Single-family rentals secure $1.4 billion in notes through Progress trust

The Progress Residential Trust platform is preparing to sponsor two securitizations raising a total of $1.4 billion in notes ultimately secured by pools of single-family rental homes, primarily.

Series 2025-SFR2 and 2025-SFR3 have different close dates, but both are due to close by the end of April, according to rating agency Morningstar | DBRS and Asset Securitization Report's deal database.

The series 2025-SFR2 will issue $656 million in notes through about nine tranches of classes A through F and repay noteholders sequentially, DBRS said. SFR Investments V REIT is the securitization sponsor on at least the PROG 2025-SFR2 transaction, but at press time it was unclear if SFR Investments was also the sponsor on the Progress Residential Trust 2025-SFR3.

Goldman Sachs, Ares Management Capital Markets, Barclays Capital, Deutsche Bank Securities, Pretium Securities and Scotia Capital are among the lead managers and co-lead managers, DBRS said.

A single loan secured by a pool of 2,235 first-priority mortgages, primarily single-family homes, composes the collateral for the series 2025-SFR2. They have low delinquency and low vacancy, and DBRS finds that on average, monthly rents total $1,799.

The 2025-SFR2 pool also includes 47 townhomes, two manufactured homes and two condominiums, the rating agency said. On average, properties have a broker price opinion of $288,414.

Three entities under the HOME SFR entity are listed as borrower, while Midland Loan Services is the servicer and special servicer, according to the rating agency.

Credit support on the SFR2 series ranges from 54.35% on the AAA-rated, class A notes to 9.55% on the B-rated, class G notes.

Aside from the class A notes, DBRS assigned ratings of AA and A, on classes B and C, respectively; BBB on the D and E classes; and BB on the class F notes.

Fitch Ratings, according to ASR's deal database, assigned AAA to the class A notes; AA- to the class B notes; A- to the class C notes and BBB- to the class D notes.

As for the SFR3 series of notes, Citigroup Global Markets, Deutsche Bank Securities, Goldman Sachs, J.P. Morgan Securities, Nomura Securities and RBC Capital Markets are managers on the deal, according to ASR's deal database.

One loan collateralizes those notes, too, and it's secured by 1,453 detached homes and 567 townhomes.

Like the SFR2 series, Fitch assigned AAA to the class A notes; AA- to the class B notes; A- to the class C notes and BBB- to the class D notes.